David Stockman: Thanks For The Corporate Bond Bubble, Fed
byOnce upon a time businesses borrowed long term money—-if they borrowed at all—-in order to fund plant, equipment and other long-lived productive assets. That…
Economics
Zero Hedge: Sudden Plunge In Japanese Government Bonds Triggers Circuit Breaker, Halts Market For 30 Seconds
byIt was just yesterday when we observed the record collapse across the Japanese curve when first the 10Y JGB plunged to an all time…
Eugen von Böhm Bawerk: Greenspan, the Sheepherder
byIt is common knowledge by now that Federal Reserve Chairman Alan Greenspan oversaw, enabled and approved of, a major transition in the US economy….
Downtrend in the growth rate of money supply poses a threat to bubble activities
byThe yearly growth rate of real gross domestic product eased to 1.9% in Q4 from 2% in the previous quarter. Using our large scale…
Carl Menger And The Foundations Of Austrian Economics
byToday is Austrian economist, Carl Menger’s, birthday. Born on February 23, 1840, he died on February 26, 1921, at the age of 81. Menger…
Negative rates, Negative Outcomes
byThere has been much head-scratching of late as to why, with interest rates lower than they have been since the Universe first exploded out…
Jittery January Markets – Does the ECB have Contingency Plans?
byThe ECB must be aware that investors’ confidence in stock markets, particularly bank shares, dropped in January. If contingency plans exist, they are likely…
Everything changes at zero
by“Then said Jesus, “Father, forgive them; for they know not what they do.”” – Luke 23:34. For the benefit of non-subscribers, there are two…
Whatever it Takes?
byIn the midst of all the recent uproar, one anonymous Twitterer seized his chance to have his Uber-Warholian, 140-characters-of-fame moment and thundered: ‘Central banks…
Why did Japanese NIRP cause such surprise in the currency market and is it more dangerous?
byThe Bank of Japan announcement of NIRP sent shock waves through currency markets The Yen has strengthened on capital repatriation since the BoJ move…